PAC blames Centre for arbitrary coal block allocations
Report says the Centre ignored the recommendations of the Odisha government
A public accounts committee (PAC) of the Parliament has blamed the Centre for arbitrarily allocating coal blocks in Odisha even without the recommendations of the state government. The panel's observation has turned the heat on the Centre on coal block allocation row while ostensibly giving a clean chit to Odisha.
“From whatever we have observed during our talks with the state government officials, we have noted that in many cases, the Centre allocated coal blocks arbitrarily in Odisha even without the recommendations of the state government. Besides suo moto allocations, there were cases in which the Centre alloted a coal block jointly to many allocatees against the state government's recommendation in favour of a single company”, said BJD MP Bhartruhari Mahtab, senior Biju Janata Dal (BJD) MP and convener of the PAC.
“The development of coal blocks in Odisha has hit a delay because the Centre allocated blocks jointly to many companies without the state government's consent”, he said.
Asked whether the state government clarified its stand on auctioning of coal blocks, Mahtab said, “The state government has explained its position on the matter and the PAC members are satisfied with its response.”
The PAC's mandate was to know the state government's views on coal block allocation process, whether the state government was consulted during allocation of blocks and if the state has ventilated its views to the Centre on block allocations, he stated.
The state government held that recommendation for coal blocks in favour of companies were made on the premise of value addition.
Asked on irregularities in coal block allocations, he said, “It (irregularity in coal block allocations) is a part of the audit process and we discussed it.”
“ We also discussed on water pollution. There were discussions on measures to contain pollution in Brahmani and Baitarani rivers. We have sought information from the state government on the joint venture deal between Odisha Mining Corporation (OMC) and Sainik Mining”, Mahtab added.
Chief secretary B K Patnaik said, “The state government has placed its views before the PAC. They have sought information on recommendation made by the state government for those companies that are yet to be awarded coal blocks.”
Apart from the state government officials, the PAC held talks with the chairman cum managing director of Mahanadi Coalfields Ltd (MCL) A N Sahay and other top officials of the coal company.
“ Extraction of coal is one of the major issues that we discussed. MCL's underground production is going down every year. The coal PSU has not been able to meet the requirement of consumers. It is also facing constraints like difficulty in getting land for mining projects”, he said.
A K Singh, director (technical), MCL said, “The PAC reviewed the performance of MCL and difficulties faced by us. We have been unable to expand our production due to delays in getting forestry and environment clearances. Also, there are R&R (rehabilitation & resettlement) problems. There is delay in getting land for our mining projects.”